2014-15 departmental performance report · development for quebec regions in 2014–15. our...

DEPARTMENTAL PERFORMANCE REPORT

Canada Economic Development for

Quebec Regions

2014–15

The Honourable Navdeep Bains, P.C., M.P. Minister of Innovation, Science and Economic Development

Departmental Performance Report 2014–15

PUBLISHED BY

Canada Economic Development

for Quebec Regions

Montreal, Quebec H3B 2T9

www.dec-ced.gc.ca

CATALOGUE Iu90-1/13E-PDF

ISSN 1490-7380

December 2015


Canada Economic Development for Quebec Regions

Table of Contents

Ministers' Message ................................................................................................................... 1

SECTION I: Organizational Expenditure Overview ....................................................... 3

1.1 Organizational Profile ........................................................................................................................ 3

1.2 Organizational Context ...................................................................................................................... 4

1.2.1 Raison d’être and Responsibilities ............................................................................................... 4

1.2.2 Strategic Outcome and Program Alignment Architecture ................................................. 6

1.2.3 Organizational Priorities .................................................................................................................. 7

1.2.4 Risk Analysis ...................................................................................................................................... 11

1.3 Actual Expenditures ........................................................................................................................ 12

1.4 Alignment of Spending With the Whole-of-Government Framework ........................ 15

1.5 Departmental Spending Trends ................................................................................................. 16

1.6 Expenditures by Vote ...................................................................................................................... 17

SECTION II: Analysis of Programs by Strategic Outcome ......................................... 19

2.1 Strategic Outcome (SO): Quebec’s regions have a growing economy ........................ 20

2.2 Program 1.1 – Business Development ..................................................................................... 23

2.2.1 Sub-program 1.1.1 – Entrepreneurship Support ............................................................. 26

2.2.2 Sub-program 1.1.2 – Business Performance ...................................................................... 28

2.3 Program 1.2 – Regional Economic Development ................................................................ 31

2.3.1 Sub-program 1.2.1 – Regional Engagement ...................................................................... 34

2.3.2 Sub-program 1.2.2 – Regional Investment ......................................................................... 36

2.4 Programme 1.3 – Strengthening Community Economies ................................................ 39

2.4.1 Sub-program 1.3.1 – Community Futures Program ...................................................... 43

2.4.2 Sub-program 1.3.2 – Infrastructure Modernization ....................................................... 46

2.4.3 Sub-program 1.3.3 – Targeted and/or Temporary Support ....................................... 48

2.5 Program 1.4 – Internal Services ................................................................................................. 52

SECTION III: Supplementary Information ..................................................................... 55

3.1 Financial Statements Highlights ................................................................................................. 55

3.2 Financial Statements ....................................................................................................................... 58

3.3 Supplementary Information Tables .......................................................................................... 59

3.4 Tax Expenditures and Evaluations ............................................................................................ 59

SECTION IV: Organizational Contact Information ...................................................... 61

Appendix: Definitions .......................................................................................................... 63

Endnotes ................................................................................................................................... 67


Canada Economic Development for Quebec Regions 1

Ministers’ Message

We are pleased to present this report on the key activities of Canada Economic

Development for Quebec Regions in 2014–15.

Our overarching goals within the Innovation, Science and Economic Development

portfolio are to help Canadian businesses grow, innovate and export so that they can spur

economic development and create good quality jobs and wealth for Canadians in all

regions across the country; to help small businesses grow through trade and innovation;

to promote increased tourism to Canada; to promote and support scientific research and

the integration of scientific considerations in our investment and policy choices. We are

committed to working closely with colleagues and stakeholders from all of these diverse

fields to achieve these objectives.

We are pleased to present the 2014-15 Departmental Performance Report for Canada

Economic Development for Quebec Regions.

The Honourable Navdeep Bains The Honourable Kirsty Duncan The Honourable Bardish Chagger

Minister of Innovation, Science Minister of Science Minister of Small Business

and Economic Development and Tourism


Ministers’ Message 2



SECTION I: Organizational Expenditure

Overview

1.1 Organizational Profile

Minister of Innovation, Science and Economic Development:

The Honourable Navdeep Bains, P.C., M.P.

• The Honourable Denis Lebel, P.C., M.P. (responsible Minister for 2014–15)

Minister of Science:

The Honourable Kirsty Duncan, P.C., M.P.

Minister of Small Business and Tourism:

The Honourable Bardish Chagger, P.C., M.P.

Deputy Head: Marie Lemay

Ministerial Portfolio:


Enabling Instrument:

Economic Development Agency of Canada for the Regions of Quebec Act1

Year Established: 2005

1 To consult the text of the Economic Development Agency of Canada for the Regions of Quebec Act, visit: http://laws-

lois.justice.gc.ca/eng/acts/E-1.3/index.html.

http://laws-lois.justice.gc.ca/eng/acts/E-1.3/index.html



SECTION I : Organizational Expenditure Overview 4

1.2 Organizational Context

1.2.1 Raison d’être and Responsibilities

Mission

Under its Act,2 which came into effect on October 5, 2005, the object of the Economic

Development Agency of Canada for the Regions of Quebec (CED) is to “promote the

long-term economic development of the regions of Quebec by giving special attention

to those where slow economic growth is prevalent or opportunities for productive

employment are inadequate.”

Strategic Outcome

Quebec’s regions have a growing economy.

Vision

Quebec regions and enterprises participate to their full potential in the economy of

tomorrow, building on their respective assets.

As part of its mission, CED promotes the startup and performance of businesses. It helps

them become more competitive, productive, innovative and active on markets in Canada

and elsewhere. It supports communities’ engagement efforts in the different regions of

Quebec and helps attract investment that will increase the prosperity of the Quebec and

Canadian economies.

CED thus contributes to the economic vitality of all Quebec regions, by paying special

attention to communities with low economic growth, as stipulated in its enabling Act. In

this respect, CED uses an Economic Development Index3 which allows it, among other

things, to determine the economic development levels of Quebec’s 104 communities4 in

order to meet needs effectively.

CED works with businesses, primarily small and medium-sized enterprises (SMEs), as

well as non-profit organizations (NPOs), through its business offices.5 By providing

financial assistance for projects, among other things, CED supports their development

efforts.

2 To consult the text of the Economic Development Agency of Canada for the Regions of Quebec Act, visit: http://laws-

lois.justice.gc.ca/eng/acts/E-1.3/index.html. 3 CED’s Economic Development Index consists of many variables, such as the participation rate, level of entrepreneurship, level

of exporting establishments, value of building permits, diversification of the industrial structure, productivity, and more besides. 4 By “communities,” CED means Quebec’s 104 regional county municipalities (RCMs) and equivalent territories (ETs). 5 To consult the list of CED’s business offices, visit: www.dec-ced.gc.ca/eng/contact/offices/index.html.



http://www.dec-ced.gc.ca/eng/contact/offices/index.html



CED’s approach is inspired by the best practices identified with respect to regional

economic development.6 It is:

consistent with government priorities and national strategies in line with its object and

anticipated results;

geared to the economic issues and challenges of Quebec’s enterprises and its different

regions by building on their assets and potential; and

collaborative with economic agents, such as local partners, other federal departments

and agencies, the Quebec government and municipal organizations.

CED’s Grants and Contributions Programs and Initiatives, in effect 2014–157

Main Program:

Quebec Economic Development Program (QEDP)

Targeted and/or Temporary Initiatives:

Economic Recovery Initiative for Lac Mégantic

Canadian Economic Diversification Initiative for Communities Reliant on

Chrysotile

Strategic Initiative to Combat the Spruce Budworm Outbreak in Quebec

(SICSBOQ)

Linguistic Duality Economic Development Initiative (EDI)

Canada-wide Program Implemented in Quebec by CED:

Community Futures Program (CFP)

Infrastructure Canada’s delivery partner in Quebec8:

Building Canada Fund – Quebec (BCF)

6 Visit CED’s website: www.dec-ced.gc.ca/eng/publications/agency/strategic/2012/261/index.html. 7 CED contributes to the design, administration or implementation in Quebec of nationwide grants and contributions (G&C)

programs and temporary initiatives. For further details concerning these programs and initiatives, visit CED’s website at

www.dec-ced.gc.ca/eng/programs/qedp/index.html and the supplementary tables on transfer payments. 8 For further details on this program, visit the Infrastructure Canada website: www.infrastructure.gc.ca/index-eng.html.

http://www.dec-ced.gc.ca/eng/publications/agency/strategic/2012/261/index.html

http://www.dec-ced.gc.ca/eng/programs/qedp/index.html

http://www.infrastructure.gc.ca/index-eng.html



1.2.2 Strategic Outcome and Program Alignment Architecture

This report is structured according to CED’s Program Alignment Architecture (PAA),

which came into effect on April 1, 2012.9 The following list presents the complete

framework of CED’s four programs and seven sub-programs,10

the links among them,

and the strategic outcome to which they contribute.

1. Strategic Outcome: Quebec’s regions have a growing economy

1.1 Program: Business Development

1.1.1 Sub-program: Entrepreneurship Support

1.1.2 Sub-program: Business Performance

1.2 Program: Regional Economic Development

1.2.1 Sub-program: Regional Engagement

1.2.2 Sub-program: Regional Investment

1.3 Program: Strengthening Community Economies

1.3.1 Sub-program: Community Futures Program

1.3.2 Sub-program: Infrastructure Modernization

1.3.3 Sub-program: Targeted and/or Temporary Support

1.4 Program: Internal Services

9 Some minor, administrative changes have been made in CED’s PAA since 2012.

10 Note that a grant and contributions (G&C) program or a transfer payment program does not correspond to a program or sub program in the PAA.



1.2.3 Organizational Priorities

Priorities represent the areas on which CED has decided to focus, but do not exclude the

execution of activities in other areas of the PAA. They are established on the basis of

Government of Canada priorities, departmental targeted results and risks, and the

economic challenges of Quebec’s different regions. During FY 2014–15, CED

implemented the following three priorities, which are in line with those presented in its

most recent Reports on Plans and Priorities (RPPs):

Priority #1 Type Link to Program

Support the maintenance

and growth of businesses Ongoing

1.1 Business Development

Summary of Progress

Because of its economic mandate, CED is central to national priorities with respect

to the prosperity of regions and businesses, and job creation.

CED signed 440 new contribution agreements with regard to this priority in 2014–

15, representing $171 million in approved financial assistance. This was an increase

over the previous year, in volume (23%) and dollars (32%).

Financial assistance approved in support of businesses was based on:

- productivity and expansion, with 250 projects for approved assistance totalling

$86.4 million;

- innovation and technology transfer, with 34 projects totalling $29.8 million in

approved assistance;

- business creation and startup, with 54 projects totalling $28.6 million in

approved financial assistance;

- commercialization and exports, with 91 projects totalling $23.3 million in

approved assistance; and

- structuring of networks, with 11 projects totalling $3.2 million in approved

assistance.



CED contributes to the dynamism and vitality of regional economies, by paying

particular attention to communities with lower growth potential.11 In 2014–15, 32%

of the assistance approved by CED with respect to business growth targeted RCMs

with low potential for growth. Those communites account for 21% of Quebec’s

total population.


Contribute to

strengthening the

economy of the

regions and

communities through

targeted and/or

temporary support

Ongoing

(wording revised)

1.3 Strengthening Community

Economies

Summary of Progress

In 2014–15, CED continued to engage in order to strengthen community economies, by

providing communities with targeted and/or temporary support. CED implemented

three priority initiatives:

1. Canadian Economic Diversification Initiative for Communities Reliant on

Chrysotile

- Has a budget envelope of $50 million over seven years (2013–2020);

- Aims to accompany communities and businesses in Des Appalaches and Des

Sources RCMs in their efforts to diversify and strengthen their economic

base and thus increase their long-term growth potential;

- In 2014–15, 11 projects totalling close to $7 million were approved.

2. Economic Recovery Initiative for Lac Mégantic

- With a budget envelope of $35 million over seven years (2013-2020), it is

divided into three components: rebuilding of the town, direct assistance to

enterprises, and creation of two investment funds managed by the Mégantic-

area Community Futures Development Corporation (CFDC);

11

CED has identified 68 RCMs with slow economic growth, targeted on the basis of its Economic Development Index. For a list

of these RCMs, visit: www.dec-ced.gc.ca/eng/programs/qedp/rcm.html.

http://www.dec-ced.gc.ca/eng/programs/qedp/rcm.html



- Aims to provide support for the economic recovery and rebuilding of the

town in the aftermath of the rail accident of July 6, 2013;

- Deployment of a dedicated team in the field to accompany local

stakeholders in their economic development efforts;

- In 2014–15, 13 projects totalling $9.6 million were approved.

3. Strategic Initiative to Combat the Spruce Budworm Outbreak in Quebec

- An agreement with a $6-million envelope over four years (2014–2018) was

signed with the Société de protection des forêts contre les insectes et les

maladies (SOPFIM) to help control the spruce budworm infestation in the

Bas-Saint-Laurent, Gaspésie and Côte-Nord regions;

- Is aimed at supporting the sustainability and dynamism of the forestry sector

and the health of Canada’s forests, which are vital to rural communities.

Through its activities under the Quebec Economic Development Program (QEDP),

CED also implemented two new initiatives to contribute to strengthening community

economies:

4. Restoration Initiative for Watercourse Crossings on Forest Multi-use Roads in

Wildlife Areas

- The goal of this Canada-Quebec Agreement is to encourage the restoration of

watercourse crossings damaged by weathering and severe storms, and to

ensure the improvement, rehabilitation and maintenance of these multi-use

roads in wildlife areas.

- In 2014–15, $1.5 million was invested through this Canada-Quebec

Agreement to fund projects.

5. Local Investment Initiative

- CED funded projects to support local investment in all Quebec regions by

encouraging the rehabilitation, improvement or expansion of existing

community halls, accessible to the public on a non-commercial basis.

- In 2014–15, 198 projects totalling $7.9 million were approved.




Continue the Agency’s

transformation and

modernization to

improve its efficiency

Ongoing

(wording revised)

All

Summary of Progress

In 2014–15, CED continued to simplify and modernize its processes and tools while

implementing departmental and government-wide initiatives. Also, the Destination

2020 initiative allowed CED to carry out an action plan drawn up following the

employee consultations held in 2013–14.

Facilitate transactions with its clientele through simplification and modernization of

its processes and tools

In 2014–15, CED adopted a step-by-step approach aimed at reviewing and

simplifying its business processes with a view to generating efficiencies and

facilitating transactions with its clientele. For instance, CED introduced the online

application form for the QEDP and revamped its website. It also plays an active

role in development of a common, government-wide management system for grants

and contributions (G&C).

Generate efficiencies through implementation of CED and government-wide

initiatives

In 2014–15, CED implemented several initiatives, including common operational

processes in HR, and the Directive on Performance Management. It also put in

place the Cost-effective Telephone Services Initiative.

Turning the vision for 2020 into reality through implementation of tangible

measures

In 2014–15, CED maintained its commitment toward the vision for 2020, with a

view to defining and building the Public Service for the future. CED’s report tabled

in January 2015 with the Clerk of the Privy Council showed that more than 85% of

the initiatives in the action plan were in the process of being implemented or were

already in effect at CED.

CED showed its continued openness to innovation by putting in place activities that

elicit creative and innovative ideas from employees.



1.2.4 Risk Analysis

The main external risk likely to affect the fulfilment of CED’s mandate is linked to

changes in the Quebec, Canadian and global economies.

The table below presents this risk, associated response strategies, and the link to the PAA

and organizational priorities.

Corporate Risk Risk Response Strategies Link to PAA Link to

Priorities

External Risk

Economic Risk and

Institutional

Capacity

Risk that the pursuit

of priorities and

results expected from

CED’s economic

development

programs may be

affected by the

economic context

Ongoing economic analysis,

development and

implementation of policies

and intervention tools in

response to the economic

context and Government

priorities (e.g., ongoing

watch, special initiatives)

Establishment of intervention

priorities and reallocation of

resources accordingly

Implementation of the

operational risk policy for

grants and contributions

management

Implementation of CED’s

visibility and outreach

strategy aimed at making

known its mandate and

intervention priorities on a

timely basis

Program 1.1:

Business

Development

Program 1.2:

Regional

Economic

Development

Program 1.3:

Strengthening

Community

Economies

# 1, 2 and

3



1.3 Actual Expenditures

This section provides an overview of financial and human resources, along with a

summary table portraying CED’s performance in 2014–15.

Financial Resources12

for 2014–15 (dollars)

Total

Budgetary

Expenditures

Planned

Spending

Total

Authorities13

Actual

Spending

Difference (Actual Minus

Planned)

247,840,617 247,840,617 256,774,298 253,897,916 6,057,299

For 2014–15, CED spent $253.9 million out of a possible $256.8 million, or 99% of the

authorities.

Human Resources for 2014–15 (Full-time Equivalents – FTEs)

Planned Resources Actual Resources Difference (Actual Minus Planned)

308 315 7

During the year, CED had to adjust in order to meet Government priorities and the

challenges and issues facing Quebec enterprises and communities. In 2014–15, it

approved 731 new projects, up 13% from the previous year. CED also implemented new

initiatives which contribute to strengthening the economy of communities and regions

through targeted and/or temporary support.

CED successfully met its commitments and priorities while remaining within its

operating budget. Thus, it had to adapt the allocation of its resources as planned in the

RPP 2014–15 among the programs in its PAA. The Strengthening Community Economies

and Internal Services programs were in greater demand than had been anticipated for FY

2014–15.

12 This chart includes grants and contributions expenditures, and operating expenditures. 13 Main Estimates are tabled in Parliament prior to the start of the fiscal year. Planned spending refers to expenditures published in

the Report on Plans and Priorities, and is based on the reference level update. It comprises the Main Estimates as well as any additional authorities at the time of publication of the RPP.

Total authorities represent the sum of Main Estimates and Supplementary Estimates up to March 31, 2015. This amount

corresponds to total authorities as indicated in the Public Accounts for the year ending March 31, 2015.

CED’s actual spending corresponds to actual expenditures as indicated in the Public Accounts.



Table 1 – Budgetary Performance Summary for Strategic Outcome and Programs14

(dollars)

Strategic

Outcome,

Programs and

Internal Services

Main

Estimates

2014–15

Planned Spending15

Total

Authorities

Available for

Use

2014–1516

Actual Spending

(Authorities Used)

2014–15 2015–16 2016–17 2014–15 2013–14 2012–13

Strategic Outcome #1: Quebec’s regions have a growing economy

Program 1.1:

Business

Development

146,609,271 146,609,271 151,677,176 140,314,211 146,499,765 146,564,462 147,594,134 130,483,270

Program 1.2:

Regional Economic

Development

48,507,928 48,507,928 35,237,510 32,313,130 47,945,992 34,133,620 39,132,388 44,054,296

Program 1.3:

Strengthening

Community Economies

38,816,648 38,816,648 53,720,902 51,673,326 46,333,260 55,328,034 64,286,545 102,808,455

Subtotal — Strategic Outcome

#1

233,933,847 233,933,847 240,635,588 224,300,667 240,779,017 236,026,116 251,013,067 277,346,021

Subtotal —

Internal Services 13,906,770 13,906,770 20,446,605 20,314,530 15,995,281 17,871,800 18,292,750 19,083,325

TOTAL 247,840,617 247,840,617 261,082,194 244,615,197 256,774,298 253,897,916 269,305,817 296,429,346

14 This chart includes grants and contributions expenditures, operating expenditures and statutory items. Internal services include

only operating expenditures and statutory items. 15 The $13.2M difference observed between FYs 2014–15 and 2015–16 is primarily attributable to the reprofiling of funds in

2015–16 for the Economic Recovery Initiative for Lac Mégantic, allocation of funding for the Strategic Initiative to Combat the Spruce Budworm Outbreak in Quebec, and an increase in repayable contributions collected from our clients in 2015–16.

The difference between FYs 2015–16 and 2016–17 is attributable to the reinvestment of clients’ repayable contributions in the

2015–16 contributions budget, which is not included in planned spending for 2016–17, since the authority has not been granted at this stage.

16 Main Estimates are tabled in Parliament prior to the start of the fiscal year. Planned spending refers to expenditures published in

the Report on Plans and Priorities, and is based on the reference level update. It comprises the Main Estimates as well as any additional authorities at the time of publication of the RPP.

Total authorities represent the sum of Main Estimates and Supplementary Estimates up to March 31, 2015. This amount

corresponds to total authorities as indicated in the Public Accounts for the year ending March 31, 2015.

CED’s actual spending corresponds to actual expenditures as indicated in the Public Accounts.



Spending Analysis by PAA Program

For FY 2014–15, CED’s total grants and contributions expenditures and operating

expenditures stood at $253.9 million. Of that, $212.2 million was invested in G&C in

projects aimed at economic development. The balance of $41.7 million was used for

operations.

a. Performance of PAA programs, excluding Internal Services

Table 1 shows that CED’s actual spending for 2014–15, aside from expenditures

associated with its Internal Services, reached $236 million, thus accounting for 92.9%

of its total actual spending. This broke down among CED’s PAA programs as follows:

62% for Business Development;

15% for Regional Economic Development; and

23% for Strengthening Community Economies.

In view of the Government’s budget cycle, the variance observed between CED’s

actual and planned spending in 2014–15 in the Strengthening Community Economies

program is attributable to the fact that, when the RPP 2014–15 was released, the yearly

budgets were not known for certain temporary grants and contributions programs, such

as the Economic Recovery Initiative for Lac Mégantic and the Strategic Initiative to

Combat the Spruce Budworm Outbreak in Quebec.

Also, CED’s programs are flexible so as to adjust continually to the challenges and

issues of Quebec’s enterprises and different regions. This was reflected in 2014–15 in

the implementation of temporary initiatives and an increase in business volume which

required resource adjustments, in line with applicable statutes, policies and regulations.

The variance between CED’s forecasts and its actual spending among PAA programs is

also attributable to the nature and type of projects submitted by promoters and reflects

local needs with regard to economic development. In fact, the design and

implementation of projects supported by CED depend on local and regional enterprises

and stakeholders. As a result, there is considerable interdependence among the

economic context, the dynamism of all the agents involved, and CED’s results.

b. Performance of Internal Services

CED’s actual spending in 2014–15 in the Internal Services program of its PAA stood at

$17.9 million. Consequently, the relative share of Internal Services out of CED’s total

expenditures was 7.0% in 2014–15.



1.4 Alignment of Spending With the Whole-of-Government Framework

2014–15 Spending by Whole-of-Government Framework Spending Areai (dollars)

Strategic

Outcome

Programs Spending

Area

Government of

Canada

Outcome

Actual

Spending

Quebec’s

regions have a

growing

economy

1.1 Business

Development

Economic

Affairs

Strong economic

growth

$146,564,462

1.2 Regional

Economic

Development

Economic

Affairs

Strong economic

growth

$34,133,620

1.3 Strengthening

Community

Economies

Economic

Affairs

Strong economic

growth

$55,328,034

1.4 Internal

Services

Economic

Affairs

Strong economic

growth

$17,871,800

Total Spending, 2014–15, by Spending Area (dollars)

Spending Area Total Planned Spending

Economic Affairs $247,840,617

Social Affairs N/A

International Affairs N/A

Government Affairs N/A

http://www.tbs-sct.gc.ca/ppg-cpr/frame-cadre-eng.aspx



1.5 Departmental Spending Trend

The figure below shows CED’s actual and planned spending trend. The light grey bar

corresponds to G&C expenditures and operating expenditures under its regular

programs,17

while the dark grey bar indicates those associated with sunset programs.18

Figure 1: Actual Spending19

and Planned Spending20

Trend, April 1, 2012 to

March 31, 2018

Figure 1 presents actual spending from 2012–13 to 2014–15, and planned spending from

2015–16 to 2017–18.

With regard to actual expenditures, the figure above shows a 14% drop in CED’s

spending between 2012–13 and 2014–15, from $296 million to $254 million. The largest

decline was from 2012–13 to 2013–14. The variation may be explained by, among other

things, the termination of the Temporary Initiative for the Strengthening of Quebec’s

17 CED’s programs are the Quebec Economic Development Program (QEDP) and the Community Futures Program (CFP). 18 CED’s sunset programs between April 1, 2012 and March 31, 2018 include: Temporary Initiative for the Strengthening of

Quebec's Forest Economies, Community Infrastructure Improvement Fund, Initiative for International Cruise Development, Economic Recovery Initiative for Lac Mégantic, Strategic Initiative to Combat the Spruce Budworm Outbreak in Quebec, and

Canadian Initiative for the Economic Diversification of Communities Reliant on Chrysotile. 19 Actual spending covers the period from 2012–13 to 2014–15. 20 Planned spending covers the period from 2015–16 to 2017–18.

2012–13 2013–14 2014–15 2015–16 2016–17 2017–18

Sunset Programs – Anticipated 72 694 33 029 16 266 16 375 22 832 18 492

Statutory 5 726 4 796 4 244 4 819 4 803 4 635

Voted 218 009 231 481 233 388 239 888 216 981 216 678

50 000

100 000

150 000

200 000

250 000

300 000

350 000

In t

ho

us

an

ds o

f $

Departmental Spending Trend Graph



Forest Economies (TISQFE) and the Support Initiative for International Cruise

Development Along the St. Lawrence and Saguenay Rivers. The decline in sunset

program budgets from 2013–14 to 2014–15 is largely attributable to the termination of

the Community Infrastructure Improvement Fund program.

With respect to CED’s planned spending, the $7-million rise in expenditures from 2014–

15 ($233.4 million) to 2015–16 ($240 million) is primarily attributable to increased

reinvestment of revenues from clients’ contribution repayments. The same adjustment is

not included in planned spending for 2016–17 and 2017–18, since the authorities have

not been granted at this stage.

The variation in CED’s sunset programs from 2015–16 to 2017–18 is explained by the

variability in funding levels from year to year for the various planned initiatives,

including in particular the Economic Recovery Initiative for Lac Mégantic and the

Canadian Initiative for the Economic Diversification of Communities Reliant on

Chrysotile.

1.6 Expenditures by Vote

For information on CED’s voted appropriations and/or statutory expenditures, please

consult the Public Accounts of Canada 2015ii on the Public Works and Government

Services Canada website.iii

http://www.tpsgc-pwgsc.gc.ca/recgen/cpc-pac/index-eng.html




SECTION II: Analysis of Programs by Strategic

Outcome This section provides information on the results of the Economic Development Agency

of Canada for the Regions of Quebec (CED) for 2014–15 in relation to planned

outcomes, on the basis of its Program Alignment Architecture (PAA), as illustrated

below.iv

1. Strategic Outcome – Quebec’s regions have a growing economy

Program 1.1

BUSINESS DEVELOPMENT

Program 1.2

REGIONAL ECONOMIC DEVELOPMENT

Program 1.3

STRENGTHENING COMMUNITY ECONOMIES

Sub-program 1.1.1:

ENTREPRENEURSHIP SUPPORT

Sub-program 1.2.1: REGIONAL ENGAGEMENT

Sub-program 1.3.1:

COMMUNITY FUTURES PROGRAM

Sub-program 1.1.2:

BUSINESS PERFORMANCE

Sub-program 1.2.2: REGIONAL INVESTMENT

Sub-program 1.3.2: INFRASTRUCTURE MODERNIZATION

Sub-program 1.3.3:

TARGETED AND/OR TEMPORARY SUPPORT

Program 1.4 INTERNAL SERVICES


SECTION II: Analysis of Programs by Strategic Outcome 20

2.1 Strategic Outcome (SO): Quebec’s regions have a growing economy

Overall Performance Measurement

CED Overall Results Performance 2014–15

Total number of projects

supported21

Total number of projects approved22

Total actual spending

Leverage effect23

1,083 projects supported

731 projects approved

$212.2 million

$2.88 for each dollar invested by CED

SO Performance Indicators Targets Actual Results24

Attainment

Date

Number of administrative regions of

Quebec that increased their gross

domestic product

17 N/A April 1, 2017

Percentage of Quebec

communities25

having improved

their economic performance26

65% N/A April 1, 2017

21 The total number of projects supported corresponds to projects for which expenditures were made by CED during a given

period. The above result excludes projects associated with the Infrastructure Modernization sub-program. 22 The total number of projects approved corresponds to projects newly approved by CED over a given period. Projects associated

with the Infrastructure Modernization sub-program are reflected in Infrastructure Canada’s Departmental Performance Report. 23 The leverage effect compares financial assistance approved by CED with funding from promoters and other sources. The above

result excludes funding associated with the Infrastructure Modernization sub-program.

24 Not applicable. In line with CED's Performance Measurement Framework (PMF), performance indicators concerning the organization’s strategic outcome are monitored and measured every five years. These data will be available on April 1, 2017.

25 By “communities,” CED means Quebec’s 104 regional county municipalities (RCMs) and equivalent territories (ETs). 26 Measured by the progression of the economic variables in CED’s Economic Development Index (e.g., participation rate, level

of entrepreneurship and exporting establishments, value of building permits, productivity, etc.).



Performance Analysis

For FY 2014–15, CED’s overall performance was positive. Indeed, it contributed to the

economic prosperity and growth of Quebec’s regions.

CED makes a difference in the regions of Quebec through its action

Between April 1, 2014 and March 31, 2015, CED invested $212.2 million directly

in enterprises or through non-profit organizations (NPOs), for the implementation

of 1,083 projects.

More than 9,843 enterprises in all regions of Quebec in 2014–15 received support

directly from CED or through an NPO assisted by CED.

Each dollar spent by CED in 2014–15 generated $2.88 in investment in the regions,

more than its leverage effect posted in 2013–14 ($2.62).

CED fosters the advancement in Quebec of Canada-wide strategies and regional

priorities with respect to economic development

CED approved 731 new projects, up 13% from the previous year.

CED implemented initiatives which enabled it to provide targeted and/or temporary

support for vulnerable communities: the Canadian Economic Diversification

Initiative for Communities Reliant on Chrysotile, the Economic Recovery Initiative

for Lac Mégantic, and the Strategic Initiative to Combat the Spruce Budworm

Outbreak in Quebec.


CED drew up and implemented new initiatives to foster economic activity and

generate investment in Quebec’s regions: the Local Investment Initiative, and the

Restoration Initiative for Watercourse Crossings on Forest Multi-use Roads in

Wildlife Areas.

CED also fostered the growth of English-speaking communities (i.e., official

language minority communities in Quebec) by paying them $1.7 million within the

framework of 12 Linguistic Duality Economic Development Initiative (EDI)

projects.

CED organized Quebec’s first Symposium on the Canadian Defence and Security

Market, which brought together in Montreal 17 prime contractors along with

representatives of 177 enterprises and organizations. The activity helped promote

Quebec enterprises’ capabilities with a view to maximizing the spinoffs generated in



Quebec by the Government of Canada’s major procurement projects, in particular

projects associated with marine, air and land transportation equipment.27

CED is transforming itself and modernizing its procedures to serve its clients more

effectively

CED continued to modernize its procedures, building on the simplification and

modernization of its processes and tools. For instance, it set up tools for processing

online applications for the QEDP. Also, CED plays an active role in development of

a common, government-wide management system for grants and contributions

(G&C).

CED worked closely with the other regional development agencies to generate

efficiencies, collaborate in different areas of activity, and share expertise and best

practices

27 This involves CED’s efforts in connection with the Industrial and Technological Benefits (ITB) Policy. For further information

on the Policy, please consult: www.dec-ced.gc.ca/eng/services/itb/index.html.

http://www.dec-ced.gc.ca/eng/services/itb/index.html



2.2 Program 1.1 – Business Development

Strategic Outcome #1 QUEBEC’S REGIONS HAVE A

GROWING ECONOMY

Program 1.1

BUSINESS DEVELOPMENT

Sub-program 1.1.1:

ENTREPRENEURSHIP SUPPORT

Sub-program 1.1.2:

BUSINESS PERFORMANCE

Description

This program (P) is designed to support enterprises throughout their life cycle so as to

sustain Quebec’s economic growth. Businesses, small and medium-sized enterprises

(SMEs) in particular, are an engine of economic development. They are recognized as

generating a significant share of economic activity and creating employment in

communities.

The Economic Development Agency of Canada for the Regions of Quebec (CED)

contributes to the renewal of the pool of enterprises in Quebec by supporting the

emergence of new enterprises and business succession. CED also works to increase the

competitiveness of existing enterprises and support their survival by enhancing their

performance. It does so by supporting projects that enable enterprises to modernize,

expand, launch or extend their export activities, reinforce their innovation capability,

commercialize, and establish partnerships.

In this program, CED intervenes primarily in relation to enterprises, either directly or

through non-profit organizations providing support for enterprises and entrepreneurs. It

promotes business development through a grants and contributions program, the Quebec

Economic Development Program (QEDP).

Program Financial Resources,28

2014–15 (dollars)

Main Estimates Planned

Spending

Authorities Actual

Spending

Difference (Actual Minus

Planned)

146,609,271 146,609,271 146,499,765 146,564,462 -44,809

28 This chart includes grants and contributions expenditures, and operating expenditures.



Program Human Resources, 29

2014–15 (Full-time Equivalents – FTEs)

Planned Actual Difference (Actual Minus Planned)

143 121 -22

Program Performance Measurement, 2014–15

Program 1.1: Business Development

Overall Results Performance

Number of projects supported30

Actual spending

Share of CED’s G&C spending

743 projects

$131.7 million

62%31

Expected Final Results32

Performance Indicators

Three-

year

Targets

Cumulative

Results33

The pool of enterprises in Quebec

is renewed

Rate of survival34 of businesses

supported in their startup

55% 84%

Rate of survival of businesses

supported in their transfer

— N/A35

Quebec enterprises are

competitive

Rate of survival of businesses

supported in their development

75% 96%

29 The difference between actual and planned use of FTEs is attributable to the adjustment of resource allocation among the

programs in CED’s PAA as stated in the Report on Plans and Priorities (RPP) in 2014–15. The Strengthening Community

Economies program was in greater demand in 2014–15 than had been anticipated. 30 The total number of projects supported corresponds to projects for which expenditures were made by CED during a given

period. 31 This percentage excludes operating expenditures. 32 See supplementary tables: Appendix 1 – Technical Notes on Performance Data.

The results targets for these indicators are cumulative and were set as at March 31, 2015. The results are therefore cumulative,

and cover the period from 2012–13 to 2014–15. (See supplementary tables: Appendix 1 – Technical Notes on Performance Data.) Also, these targets were adjusted upward in the RPP 2015–16 to reflect more accurately the survival rate of enterprises

supported by CED.

34 Survival rates for businesses are measured three years after funding from CED ends.

35 No direct assistance was awarded in 2014–15 for business succession and transfer projects, but CED supported enterprises in

succession and transfer mode through the Business Performance sub-program. This indicator has been withdrawn from the 2015–16 Performance Management Framework.



Performance Analysis and Lessons Learned

CED’s performance in 2014–15 in the Business Development program exceeded

expectations. In that regard, Statistics Canada’s study on net impactv supported these

results, and confirmed that the cumulative survival rate of all cohorts shows that, five

years after receiving funding, CED’s clients post a survival rate 7.8 percentage points

higher than non-clients.

CED’s intervention in this program is identified as an organizational priority in 2014–

15, and involves supporting the maintenance and growth of businesses. CED thus

contributed to renewing the pool of enterprises and enhancing the competitiveness of

existing enterprises:

It invested $118.5 million to support implementation of 629 projects to boost

enterprises’ growth.

84% of enterprises receiving startup support were still in operation three years after

the termination of the funding awarded.

96% of enterprises assisted in their development efforts were still in operation three

years after funding ended.



2.2.1 Sub-program 1.1.1 – Entrepreneurship Support

Description

This sub-program (SP) is aimed at increasing the pool of enterprises in Quebec, where

entrepreneurial dynamism is lower than in the rest of Canada.36 CED hopes to boost

entrepreneurial dynamism throughout Quebec. It does so by encouraging business pre-

startups and startups, and by supporting the survival of existing enterprises through

succession planning and business transfers.

In this sub-program, CED provides support primarily to enterprises or non-profit

organizations that support enterprises and entrepreneurs, such as entrepreneurship

centres, incubators, and transfer and spinoff organizations. It contributes to

entrepreneurship support through its grants and contributions program, the QEDP.

Sub-program Financial Resources,37

2014–15 (dollars)

Planned Spending Actual Spending Difference (Actual Minus Planned)

21,991,391 21,984,669 -6,722

Sub-program Human Resources, 2014–15 (Full-time Equivalents – FTEs)


21 20 -1

36

Fondation de l’entrepreneurship (2014), Indice entrepreneurial québécois : Qu’est-ce qui motive nos jeunes à faire le grand

saut? (Quebec’s entrepreneurial index: What motivates our young people to take the plunge?,

http://www.entrepreneurship.qc.ca/recherches-et-analyses/indice-entrepreneurial-quebecois/indice-entrepreneurial-quebecois-2014

“The percentage of the population expressing their intention of one day creating a new enterprise or taking on an existing one

was 19.1% in Quebec and 27.6% in the rest of Canada in 2014.” 37 This chart includes grants and contributions expenditures, and operating expenditures.





Sub-program Performance Measurement, 2014–15

Expected Result Performance Indicators Targets Results

Sub-program 1.1.1: Entrepreneurship Support

Enterprises are started

up or transferred

Percentage of enterprises started

up 25%38 43%

Percentage of enterprises

transferred — N/A

39


For FY 2014–15, CED fostered business growth and maintenance, one of its priorities,

by focussing on projects to create and start up new enterprises.

CED considers that it fostered renewal of the pool of enterprises in Quebec during

2014–15. It supported the implementation of 114 projects to stimulate the creation of

enterprises. CED’s financial assistance in entrepreneurship amounted to $13.2 million.

CED thus contributed to the fact that 43% of enterprises supported had started up40 in

Quebec, thereby surpassing its target. As to the percentage of enterprises transferred,

CED’s support is provided in particular for productivity and expansion projects in the

Business Performance sub-program.

38

The target from the RPP 2015–16 has been raised to reflect the upward trend in renewal of the pool of enterprises in Quebec. 39 No direct assistance was awarded for business succession and transfer projects, but CED supported enterprises in succession

and transfer mode through the Business Performance sub-program. 40 An enterprise has started up when it has been in operation for at least one year and is generating income amounting to at least

80% of its expenditures.



2.2.2 Sub-program 1.1.2 – Business Performance

Description

The goal of this sub-program (SP) is to increase Quebec enterprises’ performance and

competitiveness. The productivity of the Quebec economy is lower than the average for

the rest of Canada,41 and productivity gains can be achieved among other things through

investment carried out by Quebec enterprises.

In fact, in the context of growing global competition, Quebec enterprises wishing to

develop or ensure their survival have to innovate and convert their ideas into business

opportunities, enhance their productivity and penetrate new markets.

CED accompanies enterprises from the different regions of Quebec to help them meet

these challenges. It does so by encouraging them to invest to optimize their production

and increase their efforts with respect to innovation, technology transfer,

commercialization and exports. CED also assists in the structuring of business networks

in which enterprises operate.

CED’s intervention in this sub-program is aimed primarily at enterprises and non-profit

organizations that support enterprises. It helps business performance through a grants and

contributions program, the QEDP.


2014–15 (dollars)

Planned Spending Actual Spending Difference (Actual Minus Planned)

124,617,880 124,579,793 -38,087

41

Centre sur la productivité et la prospérité, HEC Montréal (2014), Productivity and Prosperity in Quebec: 2014 Overview

http://cpp.hec.ca/en/category/publications/productivity-and-prosperity-in-quebec/

Labour productivity, which measures the value of the wealth created per hour worked, was $55.40 in Quebec and $61.44 in

Canada in 2013. Average annual labour productivity growth was 1.04% in Quebec and 1.18% in Canada between 1981 and

2013. 42 This chart includes grants and contributions expenditures, and operating expenditures.

http://cpp.hec.ca/en/category/publications/productivity-and-prosperity-in-quebec/



Sub-program Human Resources,43 2014–15 (Full-time Equivalents – FTEs)


122 101 -21


Expected Result Performance Indicator Target Actual

Result

Sub-program 1.1.2: Business Performance

Enterprises improve

their performance

Percentage of coached businesses that

maintained or increased their sales

figures or self-generated income44

65% 65%


CED’s performance in the Business Performance sub-program fulfilled expectations.

During 2014–15, CED supported 629 projects, investing $118.5 million to sustain the

prosperity and competitiveness of Quebec enterprises.

CED intervenes directly with enterprises, and also reaches them indirectly, via NPOs.

Through its action, CED contributed in 2014–15 to the development of more than

7,615 enterprises. Of that number:

1,891 enterprises received direct or indirect support in their productivity and

expansion projects;

1,645 enterprises received direct or indirect support in innovation and

technology transfer;

3,482 enterprises received direct or indirect support in exports and

commercialization; and

590 enterprises received direct or indirect support in structuring of networks.45

43

The difference between CED’s actual and planned use of FTEs is attributable to the adjustment of resource allocation among

the programs in its PAA as stated in the RPP 2014–15. The Strengthening Community Economies program was in greater

demand in 2014–15 than had been anticipated.

44 With a view to improving the quality and reliability of performance data, the indicators on sales and self-generated revenue

have been merged. CED made this correction in its Performance Management Framework 2014–15. 45

The term “structuring” is used to mean a network bringing together all the stakeholders which decides to acquire a governance structure to develop planned, concerted action on the strategic issues that concern them.



CED continued its support for the two Canada Business Network service centres in

Quebec, Info entrepreneurs in Montreal and Ressources entreprises in Quebec City,

which provide information and referral services to guide entrepreneurs to specialized

resources. In 2014–15, these centres responded to 23,280 information requests. CED’s

financial support through its operating budget represents $1.9 million in total

investment.

Also, 65% of the enterprises receiving support from CED in their projects to improve

their performance saw their sales or self-generated revenue increase. More specifically,

this proportion is:

67% for enterprises having carried out productivity and expansion projects;

64% for enterprises having carried out innovation and technology transfer

projects; and

58% for enterprises having carried out commercialization and exports projects.

Furthermore, Statistics Canada’s studyvi on net impact confirms that assistance from

CED increases enterprises’ chances of success. From the first years following CED

funding, enterprises receiving assistance average higher revenue growth, employment

levels and productivity than the control group of comparable enterprises.



2.3 Program 1.2 – Regional Economic Development

Strategic Outcome #1

QUEBEC’S REGIONS HAVE A GROWING

ECONOMY

Program 1.2

REGIONAL ECONOMIC DEVELOPMENT

Sub-program 1.2.1:

REGIONAL ENGAGEMENT

Sub-program 1.2.2:

REGIONAL INVESTMENT

Description

This program (P) is intended to strengthen the regions’ economic base so as to sustain the

growth of Quebec’s economy. Quebec’s regions differ in, among other things, their

industrial structure, and some are more sensitive to economic fluctuations. Quebec’s

prosperity depends on the participation of the different regions in the economy to their

full potential.

CED wishes to contribute to building strong, competitive regions. It does so by

supporting local communities as they take charge of their economic development, and by

stimulating investment in all Quebec regions.

In this program, CED intervenes primarily through non-profit organizations active in

economic development. It supports regional economic development through a grants and

contributions program, the QEDP.


2014–15 (dollars)


Spending

Total

Authorities

Available for

Use

Actual

Spending

Difference47 (Actual Minus

Planned)

48,507,929 48,507,929 47,945,992 34,133,620 -14,374,309

46 This chart includes grants and contributions expenditures, and operating expenditures. 47 The difference of approximately $14M is attributable to the fact that part of the funding originally provided for was used

instead to fund initiatives under the Strengthening Community Economies program, such as the implementation of priority

activities to fund projects for upgrading local facilities, the Economic Recovery Initiative for Lac Mégantic, and the Restoration Initiative for Watercourse Crossings on Forest Multi-use Roads in Wildlife Areas.



Program Human Resources,48

2014–15 (Full-time Equivalents – FTEs)

Planned Resources Actual Resources Difference

(Actual Minus Planned)

16 20 4


Program 1.2: Regional Economic Development


Number of projects supported

Actual spending

Share of CED’s G&C

spending

103 projects

$32 million

15%

Expected Final Result Performance Indicators

Three-

year

Targets

Cumulative

Results49

Quebec regions have a

stronger economic base

Total amount of investment

generated in regions supported

that completed the

implementation of their

development project50

$90M $64.2M51

Amount of spending by tourists

from outside Quebec attracted to

the regions supported

$9B $10.2B

Amount of foreign direct

investment maintained in or

attracted to the regions supported $1.8B $3.7B

48 Renewal of all the multi-year agreements with tourism and sectoral associations, several NPOs, and recurring major festivals

meant that additional resources were needed in the Promotion of Assets component in 2014–15 compared with previous years. 49

Targets are cumulative and were set as at March 31, 2015. Results are therefore cumulative, and cover the period from 2012–13

to 2014–15. 50 See supplementary tables: Appendix 1 – Technical Notes on Performance Data. 51

The result achieved was below the performance expected ($90M). The difference is attributable to the smaller number of

projects completed in 2014–15 in line with CED’s priorities (only five new projects in 2014–15, compared with a total of 41

projects for the previous two years), for a lower total cost (average of $450,000 in 2014–15, compared with $1.5M for the previous two years).




The performance obtained in 2014–15 under the Regional Economic Development

program partially meets expectations, and indicates that CED’s intervention is in line

with its priorities.

During FY 2014–15, CED placed greater emphasis on its two priorities, supporting the

maintenance and growth of businesses, as well as contributing to strengthening the

economies of communities and regions through targeted and/or temporary support. It

thus reallocated its resources in the Strengthening Community Economies program.

During 2014–15, CED invested $32 million in 103 projects to strengthen the economic

base of Quebec’s regions.

CED contributed to creating new opportunities in Quebec regions by building on their

respective assets. Since April 1, 2012, CED and its project-partner fund providers

generated $64.2 million52 in the regions by encouraging local communities to carry out

their projects and acquire the community economic facilities necessary for their

development.

CED also contributed to attracting tourists to the different regions of Quebec from

other provinces and outside Canada. The latest data53 show that tourists spent

$3.5 billion in Quebec in 2013, up slightly from 2012 ($3.4 billion). CED has exceeded

the cumulative goal of $9 billion that it set for March 31, 2015.

CED fostered the attraction of investment from foreign firms and international

agencies. Since 2012–13, it has contributed to attracting $3.7 billion in investment, thus

surpassing its goal set for March 31, 2015. This performance is attributable to the

establishment and expansion in Greater Montreal of several subsidiaries of foreign

corporations. This foreign direct investment was primarily concentrated in high-

technology industries, thus supporting the region’s productivity and competitiveness.54

52

The cumulative result for the target is $64.2M calculated over the period from April 1, 2012 to March 31, 2015. 53 Tourisme Québec, Les plus récentes données sur le tourisme au Québec (dernière mise à jour : 17 juin 2015) (Latest Data on

Tourism in Quebec [Latest update: June 17, 2015]) www.tourisme.gouv.qc.ca/publications/categorie/plus-recentes-donnees-

tourisme-quebec-143.html. 54 Montreal International (2014), 2014 Activity Report www.montrealinternational.com/en/publications/2014-activity-report and

Quebec International (2014), 2014 Annual Report www.quebecinternational.ca/about-us/publications/?lang=en.

http://www.tourisme.gouv.qc.ca/publications/categorie/plus-recentes-donnees-tourisme-quebec-143.html


http://www.montrealinternational.com/en/publications/2014-activity-report/

http://www.quebecinternational.ca/about-us/publications/?lang=en



2.3.1 Sub-program 1.2.1 – Regional Engagement

Description

This sub-program (SP) is aimed at supporting local communities as they take charge of

their development so as to strengthen the economic base of Quebec’s regions. Local

empowerment with regard to local economic development and the synergy with which

stakeholders interact are success factors in eliciting the establishment of growth-

generating projects.

CED sustains the growth and diversification of Quebec communities by supporting

engagement and joint action by the various stakeholders, planning of their economic

development, canvassing, pursuit of funding and implementation of structuring, recovery

or diversification initiatives.

In this sub-program, CED intervenes primarily through non-profit organizations with an

economic role. It supports Regional Engagement through a grants and contributions

program, the QEDP.


2014–15 (dollars)

Planned Spending

Actual Spending

Difference (Actual Minus Planned)

4,850,793 3,413,362 -1,437,431


Planned Resources Actual Resources Difference


8 4 -4





Expected Result Performance Indicator Target Result

Sub-program 1.2.1: Regional Engagement

Communities take charge of

their economic development

Percentage of communities supported

which implement mobilization

projects56

40% 29%


In order to meet communities’ needs, in line with its priorities, CED concentrated its

intervention on the Business Development and Strengthening Community Economies programs,

thereby supporting a large number of communities, to boost their economies and foster their

development. Information on the performance of these programs may be found in the sections

of the Report dedicated to them.

CED approved three new projects aimed at regional engagement in 2014–15.

Also, CED continued its financial support for communities by investing $3.1 million in

24 previously approved projects falling under Regional Engagement.

Under this sub-program, CED also supports the implementation of recovery and diversification

plans and of projects stemming from those plans. Thus, of the 14 communities receiving

financial support from CED in 2014–15 for projects aimed at their engagement and

development, four implemented projects arising from planning, or 29% of the communities

supported.

56 See supplementary tables: Appendix 1 – Technical Notes on Performance Data.



2.3.2 Sub-program 1.2.2 – Regional Investment

Description

This sub-program (SP) is aimed at increasing investment in the different regions of

Quebec so as to strengthen their economic activity base. Quebec’s regions are faced with

global competition, and have to stand out to attract investment needed to maximize their

economic growth.57

Quebec must build on its current strengths, such as access to the North American market,

a diversified economy, niches of excellence, skilled workers, an enviable quality of life,

abundant resources, a distinctive tourism offering, and more besides.

CED supports regions in their efforts to acquire the equipment necessary to harness their

assets in order to stimulate business and generate economic spinoffs. It also does so by

enhancing promotion of regional assets with a view to increasing tourist spending and the

attraction of foreign direct investment through foreign firms and international

organizations.

In this sub-program, CED focusses on non-profit organizations. It supports Regional

Investment through a grants and contributions program, the QEDP.


2014–15 (dollars)

Planned Spending Actual Spending

Difference59 (Actual Minus Planned)

43,657,136 30,720,258 -12,936,878

57 Centre sur la productivité et la prospérité, HEC Montréal (2010), Ouverture aux investissements directs étrangers et

productivité au Canada (Openness to Foreign Direct Investment and Productivity in Canada). 58 This chart includes grants and contributions expenditures, and operating expenditures. 59

The difference between actual and planned spending is attributable to the fact that part of the funding originally provided for was used instead to fund initiatives under the Strengthening Community Economies program.




Planned Resources Actual Resources Difference60


8 16 8



Sub-program 1.2.2: Regional Investment

Quebec regions attract

investment

Percentage of communities supported

which implement community economic

facility projects

75% 100%

Number of tourists from outside Quebec

attracted to the regions 5.9M 6.5M

Number of international organizations

and foreign enterprises maintained, in

expansion or attracted to the regions

supported

30 50


In 2014–15, performance in the Regional Investment sub-program exceeded

expectations. CED contributed to the competitive positioning of the different regions of

Quebec, to help them become more attractive and open to the world. It funded 79

projects, to the tune of $28.9 million, to stimulate different forms of investment in

Quebec.

In that regard, the Project to Implement the Eeyou Istchee Broadband Communications

Network (ECN) Case Studyvii

concluded that specific and targeted programs are

necessary to support remote areas in their growth-generating projects.

In this sub-program, CED supports, in particular, the planning and implementation of

community economic facility projects. Thus, the four communities which received

financial support from CED in 2014–15 for community economic facility projects

60 Renewal of all the multi-year agreements with tourism and sectoral associations, several NPOs, and recurring major festivals

meant that additional resources were needed in the Promotion of Assets component in 2014–15 compared with previous years. The sums associated with these new projects will primarily be spent beginning in 2015–16.



carried out projects stemming from planning (100% of the communities supported).

CED also fostered the international outreach of Quebec’s regional economic assets. It

supported the commercialization of destinations or major events, such as festivals, to

increase the number of tourists visiting and generate economic spinoffs within

communities. According to the latest data,61

an average of some 6.5 million tourists a

year from outside Quebec visited the province’s different regions.

CED contributed, through Montreal International and Quebec International, to

maintaining in or attracting to Quebec 50 foreign firms and international organizations

in 2014–15.62

61 Tourisme Québec, Les plus récentes données sur le tourisme au Québec (dernière mise à jour : 17 juin 2015) (Latest Data on

Tourism in Quebec [Latest update: June 17, 2015]) www.tourisme.gouv.qc.ca/publications/categorie/plus-recentes-donnees-

tourisme-quebec-143.html. 62 Montreal International (2014), 2014 Activity Report www.montrealinternational.com/en/publications/2014-activity-report and

Quebec International (2014), 2014 Annual Report www.quebecinternational.ca/about-us/publications/?lang=en.



http://www.montrealinternational.com/en/publications/2014-activity-report/

http://www.quebecinternational.ca/about-us/publications/?lang=en



2.4 Program 1.3 – Strengthening Community Economies



ECONOMY

Program 1.3

STRENGTHENING COMMUNITY ECONOMIES

Sub-program 1.3.1: COMMUNITY FUTURES PROGRAM

Sub-program 1.3.2: INFRASTRUCTURE MODERNIZATION

Sub-program 1.3.3: TARGETED AND/OR TEMPORARY SUPPORT

Description

In addition to its regular programs, CED develops, administers and implements Canada-

wide programs or targeted and/or temporary initiatives. The common objective is

strengthening community economies, in order to increase Quebec’s economic growth.

CED thus supports communities’ economic development and ensures sound, effective

management of infrastructure programs in Quebec. CED also supports economic activity

in Quebec communities that are sustaining economic shocks, experiencing significant

development challenges, or grasping long-term business opportunities.

This program is directed at enterprises and non-profit organizations. CED uses dedicated,

temporary or permanent additional funding from the Government of Canada, or specific

funds which it allocates via the QEDP. It also intervenes by means of a permanent fund

dedicated to the Community Futures Program (CFP).


2014–15 (dollars)


Spending

Authorities Actual

Spending

Difference64 (Actual Minus

Planned)

38,816,648 38,816,648 46,333,260 55,328,034 16,511,386

63 This chart includes grants and contributions expenditures, and operating expenditures. 64 The difference of approximately $16.5M between actual and planned spending is attributable to the fact that, when the RPP

2014–15 was released, the yearly budgets were not yet known for certain initiatives, including the Economic Recovery Initiative for Lac Mégantic and the Strategic Initiative to Combat the Spruce Budworm Outbreak in Quebec.



Program Human Resources65

(Full-time Equivalents – FTEs)


29 47 18


Program 1.3: Strengthening Community Economies


Number of projects supported66

Number of Canada-wide programs and

temporary initiatives implemented67

Actual spending

Share of CED’s spending

237 projects

8

$48.5 million

23%

Expected Final Result Performance Indicators Three-

year

Targets

Cumulative

Results

Quebec communities

have stronger

economies

Value of total investment generated in

communities: $770.3M $776.6M68

Community Futures Program $744M $730.4M

Linguistic Duality Economic

Development Initiative 2013-

2018

$6.8M $6.9M

Canadian Economic Diversification

Initiative for Communities Reliant

on Chrysotile

$19.5M $15.1M

65 The difference of 18 FTEs between actual and planned use is primarily attributable to the implementation of new initiatives

which were not provided for in the RPP 2014–15. 66 The above result excludes projects associated with the Infrastructure Modernization sub-program. 67 The Canada-wide and temporary programs implemented by CED are: Community Futures Program (CFP), Roadmap for

Canada’s Linguistic Duality Economic Development Initiative (EDI), Canadian Economic Diversification Initiative for

Communities Reliant on Chrysotile, Economic Recovery Initiative for Lac Mégantic, Strategic Initiative to Combat the Spruce

Budworm Outbreak in Quebec, Restoration Initiative for Watercourse Crossings on Forest Multi-use Roads in Wildlife Areas, and Local Investment Initiative.

68 The overall result includes the results for the Economic Recovery Initiative for Lac Mégantic ($18.8M) and the Local

Investment Initiative ($5.4M), for which no target had been set in 2014–15.




Under the Strengthening Community Economies program, CED attained most of its

results targets as of March 2015. In 2014–15, it implemented targeted and/or

temporary initiatives, as well as a Canada-wide initiative, and administered a fund for

Infrastructure Canada.

CED’s intervention to strengthen community economies generated total investment of

$776.6 million.69

Through the Community Futures Program, CED provided 56 CFDCs and 10 BDCs

with financial support. During FY 2014–15, it supported implementation of

1,463 projects involving investment totalling $730.4 million in the communities

receiving assistance.

Through the Canada-wide EDI, CED contributed to stimulating the economic

development of English-speaking communities (i.e., official language minority

communities (OLMCs) in Quebec). In 2014–15, under this initiative, CED supported

12 projects involving $6.9 million in total investment in the communities backed, thus

surpassing the planned performance target.

Under the Canadian Economic Diversification Initiative for Communities Reliant on

Chrysotile, CED contributed to supporting the economic transition of communities in

Des Appalaches and Des Sources regional county municipalities (RCMs), which are

dependent on the chrysotile aluminum industry, toward the secondary and tertiary

sectors. CED supported 18 projects, nine of which were completed in 2014–15,

involving investment totalling $15.1 million in communities.

Under the Economic Recovery Initiative for Lac Mégantic, CED fostered that

community’s economic and commercial recovery by deploying a dedicated team in the

field to accompany local stakeholders in their economic development efforts. CED

supported 13 projects, five of which were completed in 2014–15, involving total

investment of $18.8 million in the community.

Under the Strategic Initiative to Combat the Spruce Budworm Outbreak in Quebec,

CED contributed to supporting the sustainability and dynamism of the forestry sector

and the health of Canada’s forests, which are vital to communities tied to that industry.

This year, it invested $1.5 million in the Société de protection des forêts contre les

insectes et les maladies (SOPFIM) to help control the spruce budworm infestation in

the Bas-Saint-Laurent, Gaspésie and Côte-Nord regions.



economies:

69 The above result is cumulative, and covers the period from 2012–13 to 2014–15. It excludes projects associated with the

Infrastructure Modernization sub-program.



CED’s support through the Restoration Initiative for Watercourse Crossings on Forest

Multi-use Roads in Wildlife Areas helped encourage the restoration of watercourse

crossings and ensure the improvement, rehabilitation and maintenance of these multi-

use roads in wildlife areas. In 2014–15, $1.5 million was invested in project

implementation through this Canada-Quebec Agreement.

CED also implemented the Local Investment Initiative. It funded projects to support

local investment in all Quebec regions by encouraging the rehabilitation, upgrading or

expansion of existing community halls, accessible to the public on a non-commercial

basis. In 2014–15, CED supported 120 projects involving $5.4 million in total

investment in communities.



2.4.1 Sub-program 1.3.1 – Community Futures Program (CFP)

Description

This sub-program (SP) is aimed at assisting local economic development in rural areas in

order to strengthen the economy of Quebec communities. It implements a national

program also called the Community Futures Program (CFP).

The CFP plays an important role in strengthening rural communities’ ability to diversify

their economic base so as to foster long-term prosperity and sustainability.

Through the CFP, CED encourages Quebec rural communities’ planning and

socioeconomic development, access to capital, availability of consulting services and

support for local projects.

CED delivers the CFP in Quebec with the help of Community Futures Development

Corporations and Business Development Centres, under contribution agreements.


2014–15 (dollars)


Difference (Actual vs. Planned)

30,367,433 29,819,011 -548,422


Planned Resources Actual Resources Difference (Actual vs. Planned)

10 12 2




Sub-program, Performance Measurement, 2014–15


Sub-program 1.3.1: Community Futures Program (CFP)

Communities are

economically

sustainable

Number of economic development

initiatives implemented in communities

following support to CFDCs

315 553

Percentage of entrepreneurs

undertaking pre-startup, startup or

acquisition of an enterprise with

support from CFDCs and BDCs

60% 69%

Percentage of enterprises carrying out

recovery, expansion or modernization

projects with support from CFDCs and

BDCs

73% 89%


The performance obtained in the Community Futures Program sub-program surpassed

expectations in 2014–15. CED delivers the CFP in Quebec through Community

Futures Development Corporations (CFDCs) and Business Development Centres

(BDCs), under contribution agreements.

In 2014–15, CED provided financial support for 56 CFDCs located in designated rural

regions, as well as 10 BDCs in peri-urban areas. During FY 2014–15, CED paid some

$28.4 million to those organizations to help them carry out 1,463 projects to strengthen

the economy of Quebec’s rural communities.

Through the CFDCs, CED surpassed its results targets as of March 31, 2015. CFDCs

implemented 553 economic development initiatives in communities, exceeding the

target of 315 initiatives. With the assistance of CFDCs and BDCs, 69% of

entrepreneurs supported carried out the pre-startup, startup or acquisition of an

enterprise, while 89% of enterprises carried out their recovery, expansion or

modernization projects.

The Summative Evaluation of the Business Startup and Succession Fund and the

Business Support Fundviii

performed in 2013–14 presented positive results as to the

impact of the assistance provided to enterprises by the CFDCs, and revealed that not

only did the two initiatives meet enterprises’ funding needs, but that few if any similar

offerings catered to the issues targeted by these initiatives. With a total budget

envelope of $28.3 million, the Funds led to the creation of 139 jobs and the



maintenance of 685 jobs. Moreover, the sales figures of close to 75% of the enterprises

sampled in the evaluation increased.

A study conducted by Statistics Canada71 showed that enterprises supported by CFDCs

perform better in terms of employment growth, survival rate, level of sales, and

productivity, compared with a similar control group not receiving such support.

71 Statistics Canada’s third study on the CFP (2013).



2.4.2 Sub-program 1.3.2 – Infrastructure Modernization

Description

This sub-program (SP) is aimed at ensuring sound and effective management of

infrastructure programs in order to strengthen the economy of Quebec’s communities.

Quality public infrastructure is a key factor in economic development.

CED acts as Infrastructure Canada’s delivery partner for the administration in Quebec of

the Building Canada Fund (Communities and Large Urban Centres components).72

These programs are the subject of agreements between Infrastructure Canada and the

Quebec government and are aimed primarily at municipalities.


2014–15 (dollars)


Difference (Actual vs. Planned)

1,528,865 472,312 -1,056,553

Sub-program Human Resources,74 2014–15 (Full-time Equivalents – FTEs)

Planned Resources Actual Resources Difference (Actual vs. Planned)

14 5 -9

Sub-program, Performance Measurement, 2014–15

Expected Result Performance Indicator Target Result

Sub-program 1.3.2: Infrastructure Modernization

Quebec communities

have upgraded

public infrastructure

Number of communities that have at

their disposal completed public

infrastructure under the terms of the

contribution agreement

--- ---

72 CED is responsible for monitoring the use of funds on behalf of the federal government. It is also in charge of verifying project

compliance with the standards set out in the signed Framework Agreements and program terms and conditions. 73 This chart includes operating expenditures only. 74 Actual use in FTEs for FY 2014–15 was similar to 2013–14 (4 FTEs) and to planned spending and FTE use as set out in the

RPP 2015–16.



75 See Infrastructure Canada’s website: www.infrastructure.gc.ca.


During FY 2014–15, CED continued to work with Infrastructure Canada under the

Infrastructure Modernization sub-program to ensure the implementation in Quebec of

the Building Canada Fund (Communities and Large Urban Centres components) so

that Quebec communities have upgraded public infrastructure.

Performance highlights with respect to the various infrastructure programs may be

found in Infrastructure Canada’s Departmental Performance Reports.75

http://www.infrastructure.gc.ca/



2.4.3 Sub-program 1.3.3 – Targeted and/or Temporary Support

Description

This sub-program (SP) is aimed at providing targeted and/or temporary support for

Quebec communities’ economic activity in order to stabilize or strengthen their

economies. The shifting context requires a real-time response that is geared to the most

pressing local needs and consistent with specific government priorities.

CED can thus provide support for Quebec communities facing economic shocks, natural

disasters or situations that can have an adverse impact on their economic development,

and that are facing serious economic development issues or are presented with

development opportunities likely to have a positive impact on the regions.

This sub-program is aimed primarily at enterprises and NPOs. CED intervenes through

temporary or dedicated additional funding from the Government of Canada or specific

funds which the Agency allocates through a grants and contributions program, the QEDP.


2014–15 (dollars)

Planned Spending Actual Spending Difference77 (Actual vs. Planned)

6,920,350 25,036,711 18,116,361


Planned Resources Actual Resources Difference78 (Actual vs. Planned)

5 30 25

76 This chart includes grants and contributions expenditures, and operating expenditures. 77

The difference of approximately $18M is primarily attributable to the additional operating expenditures and grants and contributions expenditures for funding new projects and initiatives not provided for in the RPP 2014–15, such as the Strategic

Initiative to Combat the Spruce Budworm Outbreak in Quebec (SICSBOQ) and the Local Investment Initiative. 78 A resource allocation adjustment was carried out to leverage the necessary FTEs, in order to analyse principally projects leading

to the upgrading of local facilities in line with local needs.





Sub-program 1.3.3: Targeted and/or Temporary Support

Communities have temporary

support available for stabilizing or

strengthening their economies

Percentage of communities

that benefit from temporary

support, by initiative :79

Linguistic Duality

Economic Development

Initiative 2013-2018

19% 23%

Canadian Economic

Diversification Initiative

for Communities Reliant

on Chrysotile

100% 100%

Economic Recovery

Initiative for Lac Mégantic 100% 100%


For 2014–15, the performance of the Targeted and/or Temporary Support sub-program met

expectations. CED paid $20 million to support implementation of 166 projects within the

framework of targeted and/or temporary initiatives to cater in real time to local needs,

CED’s priorities, and government priorities. In this way, it provided temporary support for

economic activity in all the communities targeted in order to stabilize or strengthen their

economies.

Linguistic Duality Economic Development Initiative (EDI) 2013–2018

The communities supported under EDI 2013–2018 are Quebec’s English-speaking

communities, i.e., official language minority communities (OLMCs).

- CED supported the implementation of 12 projects, to the tune of $1.7 million;

- Of the 62 OLMCs listed in Quebec, 14 communities received targeted support in

2014–15, or 23% of targeted communities.

79 For further details concerning the Canada-wide EDI initiative, the two temporary initiatives and the CIIF, see CED’s website:

www.dec-ced.gc.ca/eng/programs/qedp/index.html.

http://www.dec-ced.gc.ca/eng/programs/qedp/index.html



Canadian Economic Diversification Initiative for Communities Reliant on Chrysotile

- Has a budget envelope of $50 million over seven years (2013–2020);

- Aims to accompany communities and businesses in Des Appalaches and Des

Sources RCMs in their efforts to diversify and strengthen their economic base and

thus increase their long-term growth potential; and

- In 2014–15, $3.9 million was invested by CED in 18 projects.

Economic Recovery Initiative for Lac Mégantic

- With a budget envelope of $35 million over seven years (2013–2020), it is

divided into three components: rebuilding of the town; direct assistance to

enterprises; and creation of two investment funds managed by the Mégantic-

area CFDC;

- Aims to provide support for the economic recovery and rebuilding of the town

in the aftermath of the rail accident of July 6, 2013;

- Deployment of a dedicated team in the field to accompany local stakeholders in

their economic development efforts; and


Strategic Initiative to Combat the Spruce Budworm Outbreak in Quebec

- Has a $6-million envelope over four years (2014–2018);

- Is aimed at supporting the sustainability and dynamism of the forestry sector

and the health of Canada’s forests, which are vital to rural communities; and

- In 2014–15, CED invested $1.5 million in the Société de protection des forêts

contre les insectes et les maladies (SOPFIM) to help control the spruce

budworm infestation in the Bas-Saint-Laurent, Gaspésie and Côte-Nord

regions.



economies:

Restoration Initiative for Watercourse Crossings on Forest Multi-use Roads in

Wildlife Areas

- CED funded projects aimed at encouraging the restoration of watercourse

crossings damaged by weathering and severe storms, and ensuring the

improvement, rehabilitation and maintenance of these multi-use roads in

wildlife areas; and

- In 2014–15, $1.5 million was invested through this Canada-Quebec Agreement

to fund projects.

Local Investment Initiative

- CED funded projects to support local investment in all Quebec regions by

encouraging the rehabilitation, improvement or expansion of existing



community halls, accessible to the public on a non-commercial basis.




2.5 Program 1.4 – Internal Services



ECONOMY

Program 1.4

INTERNAL SERVICES

No sub-program

Description

Internal services are groups of related activities and resources that are administered to

support the needs of programs and other corporate obligations of an organization. The

groups are: Management and Oversight Services; Communications Services; Legal

Services; Human Resources Management Services; Financial Management Services;

Information Management Services; Information Technology Services; Real Property

Management Services; Materiel Management Services; Acquisition Management

Services; Travel Management Services and Other Administrative Services. Internal

services include only those activities and resources that apply across an organization, and

not those provided to a specific program. They lead to higher efficiency in program

delivery, thus contributing to quality services for Canadians.


2014–15 (dollars)

Estimates Planned

Spending

Authorities81

Actual

Spending

Difference (Actual minus

planned)

13,906,770 13,906,770 15,995,281 17,871,800 3,965,030

Program Human Resources,82

2014–15 (Full-time equivalents – FTEs)

Planned Resources Actual Resources Difference (Planned vs. actual)

120 127 7

80 This chart includes operating expenditures only. 81 Parliamentary authorities are awarded by global vote. So authorities by PAA program are estimates, and are presented as a

guide only. 82 The planned FTEs in the Internal Services program are broken down according to the definition of internal services provided by

the Treasury Board Secretariat in the Profile of Government of Canada Internal Services. As agreed with the TBS, however,

CED’s Management and Monitoring Services group, as with Canada’s other regional development agencies, excludes design and management of programs, policies, standards and guidelines, and government relations.




Actual use of human resources within the Internal Services program corresponds to the

operational needs associated with that program.

The difference observed from the forecast is particularly attributable to the continuation

and accelerated implementation of modernization initiatives to support CED program

delivery and contribute to providing Canadians with quality services


SECTION III: Supplementary Information 54



SECTION III: Supplementary Information

3.1 Financial Statements Highlights

The financial highlights presented below provide an overview of the financial position

and operations of Canada Economic Development for Quebec Regions (CED). The

unaudited financial statements are drawn up in accordance with government accounting

policies, which are based on Canadian generally accepted accounting principles for the

public sector.

Note that the spending presented in the tables in Sections I and II of the Report were

prepared on a cash basis, while the financial highlights that follow were prepared on an

accrual basis. Tables reconciling these two accounting methods are presented in the Notes

to CED’s financial statements.

A more detailed statement of operations and associated notes, including a reconciliation

of the net costs of operations to the requested authorities, can be found on the CED

website.83

83 See CED’s website: : http://www.dec-ced.gc.ca/eng/publications/agency/dpr/2015-2016/325/index.html

http://www.dec-ced.gc.ca/eng/publications/agency/dpr/2015-2016/325/index.html



3.1.1 Condensed Statement of Operations

Condensed Statement of Operations (unaudited)

For the year ended March 31, 2015 (dollars)ix

Financial

Information

2014–15

Planned

Results

2014–15

Actual

2013–14

Actual

Difference (2014–15

actual minus

2014–15

planned)

Difference (2014–15 actual

minus

2013–14 actual)

Total expenses84

173,978,000 151,447,431 184,836,195 (22,530,569) (33,388,764)

Total revenues 0 0 0 0 0

Net cost of

operations before

government

funding and

transfers

173,978,000 151,447,431 184,836,195 (22,530,569) (33,388,764)

84 Expenses reflect the economic resources used by CED during a period to deliver the programs in its Program Alignment

Architecture (PAA), and are of two types: (i) transfer payments; and (ii) operating expenses. Expenses calculated in the context

of the Future-oriented Statement of Operations (Section III) differ from those presented in sections I and II of the Report on

Plans and Priorities (RPP), since unconditionally repayable contributions are not accounted for as loans, thus reducing total transfer payment expenses.



Expenses

In 2014–15, CED’s total expenses stood at $151.4 million, down $33.4 million

(18.1%) from the previous year. This decrease is primarily attributable to the

termination of funding for the Community Infrastructure Improvement Fund in 2013–

14 and the increase in expenses incurred on the Government’s behalf.

In fact, transfer payment expenses, totalling $105.4 million, fell by 22.8% from 2013–

14 to 2014–15, while operating expenses also declined, by 4.7%, to $46.0 million as

of March 31, 2015.

The difference of some $22.5 million in the value of net expenses is attributable in

particular to a decline in non-repayable contributions compared with projected

figures, and to higher-than-anticipated expenses incurred on the Government’s behalf

owing to a variation in the provision for bad debts. Expenses incurred on the

Government’s behalf reduce CED’s expenses, since CED presents net expenses in its

financial statements.

Revenues

Being returned to the Consolidated Revenue Fund, CED’s revenues are declared in its

financial statements as having been earned on the Government’s behalf, so the

organization’s total net revenues are zero. In 2014–15, CED’s total gross revenues

stood at $294,123, down 55.2% from the previous year. Revenues primarily comprise

interest charged on missed payments.



3.1.2 Condensed Statement of Financial Position

Condensed Statement of Financial Position (unaudited)

For the Year Ended March 31, 2015 (dollars)

Financial Information 2014–15 2013–14 Difference

(2014–15 Minus 2013–14)

Total net liabilites 35,554,488 33,572,155 1,982,333

Total net financial assets 32,317,420 30,396,774 1,920,646

Departmental net debt 3,237,068 3,175,381 61,687

Total non-financial assets 1,081,487 811,076 270,411

Departmental net financial

position

(2,155,581) (2,364,305) 208,724

Liabilities

As of March 31, 2015, CED’s net liabilities stood at $35.6 million, up 5.9% from the

total in 2013–14. This increase is largely attributable to the rise in net accounts

payable.

Accounts payable and accrued liabilities represented the largest component of

liabilities, at 90.9% ($32.3 million) of net total liabilities, while future fringe benefits

along with vacation pay and compensatory leave accounted for 5.3% ($1.9 million)

and 3.8% ($1.4 million) of the organization’s net liabilities, respectively.

Assets

As of March 31, 2015, net financial assets stood at $32.3 million, up 6.3% from the

previous year’s total. This rise is attributable to the increase in amounts due from the

Consolidated Revenue Fund (fringe benefits and accrued liabilities).

Also, CED’s loans held entirely on behalf of the government totalled $283.8 million

as of March 31, 2015, up 2.7% from 2013–14 owing to the increase in repayable

contributions paid by the organization.

Furthermore, CED’s non-financial assets stood at $1.1 million as of March 31, 2015,

up 33.3% from the previous year. This increase is primarily attributable to the rise in

capital asset acquisitions.



3.2 Financial Statements

CED’s unaudited financial statements for the fiscal year ending March 31, 2015 and the

Core Control Audit report produced by the Office of the Comptroller General of Canada

along with the related Management Action Plan are available on CED’s website.x

3.3 Supplementary Information Tables

The supplementary information tables listed in the Departmental Performance Report

2014–15 can be found on CED’s website.85

Departmental Sustainable Development Strategy;

Details on Transfer Payment Programs;

Internal Audits and Evaluations;

Response to Parliamentary Committees and External Audits;

User Fees, Regulatory Charges and External Fees;

Appendix 1 – Technical Notes on Performance Data.

3.4 Tax Expenditures and Evaluations

The tax system can be used to achieve public policy objectives through the application of

special measures, such as low tax rates, exemptions, deductions, deferrals and credits.

The Department of Finance Canada publishes cost estimates and projections for these

measures annually in Tax Expenditures and Evaluations.xi

The tax measures presented in

that publication are the sole responsibility of the Minister of Finance.

85 See CED’s website: : http://www.dec-ced.gc.ca/eng/publications/agency/dpr/2014-2015/324/index.html#sectn_8

http://www.dec-ced.gc.ca/eng/publications/agency/rmr.html

http://www.fin.gc.ca/taxexp-depfisc/2014/taxexp14-eng.asp

http://www.dec-ced.gc.ca/eng/publications/agency/dpr/2014-2015/324/index.html#sectn_8



SECTION IV: Organizational Contact

Information

Additional Information

The following information may be found on CED’s website:

CED Programs:

www.dec-ced.gc.ca/eng/programs/index.html

CED Organizational Chart:

www.dec-ced.gc.ca/eng/agency/chart/organizational.html

CED Business Offices:

www.dec-ced.gc.ca/eng/contact/offices/index.html

CED Project Submission Guide:

www.dec-ced.gc.ca/eng/programs/guide.html


Dominion Square Building

1255 Peel Street, Suite 900

Montreal, Quebec H3B 2T9

CANADA

Telephone: 514-283-6412

Fax: 514-283-3302

Website: www.dec-ced.gc.ca

http://www.dec-ced.gc.ca/eng/programs/index.html

http://www.dec-ced.gc.ca/eng/agency/chart/organizational.html

http://www.dec-ced.gc.ca/eng/contact/offices/index.html

http://www.dec-ced.gc.ca/eng/programs/guide.html

http://www.dec-ced.gc.ca/


SECTION IV: Organizational Contact Information 62



Appendix: Definitions

Appropriation

Any authority of Parliament to pay money out of the Consolidated Revenue Fund.

Budgetary Expenditures: Include operating and capital expenditures; transfer payments

to other levels of government, organizations or individuals; and payments to Crown

corporations.

Departmental Performance Report: Reports on an appropriated organization’s actual

accomplishments against the plans, priorities and expected results set out in the

corresponding Reports on Plans and Priorities. These reports are tabled in Parliament in

the fall.

Full-time Equivalent: Is a measure of the extent to which an employee represents a full

person-year charge against a departmental budget. Full-time equivalents are calculated as

a ratio of assigned hours of work to scheduled hours of work. Scheduled hours of work

are set out in collective agreements.

Government of Canada Outcomes: A set of 16 high-level objectives defined for the

government as a whole, grouped in four spending areas: economic affairs, social affairs,

international affairs and government affairs.

Management, Resources and Results Structure: A comprehensive framework that

consists of an organization’s inventory of programs, resources, results, performance

indicators and governance information. Programs and results are depicted in their

hierarchical relationship to each other and to the Strategic Outcome(s) to which they

contribute. The Management, Resources and Results Structure is developed from the

Program Alignment Architecture.

Non-Budgetary Expenditures: Include net outlays and receipts related to loans,

investments and advances, which change the composition of the financial assets of the

Government of Canada.

Performance: What an organization did with its resources to achieve its results, how well

those results compare to what the organization intended to achieve and how well lessons

learned have been identified.

Performance Indicator: A qualitative or quantitative means of measuring an output or

outcome, with the intention of gauging the performance of an organization, program,

policy or initiative respecting expected results.


Appendix: Definitions 64

Performance Reporting: The process of communicating evidence-based performance

information. Performance reporting supports decision making, accountability and

transparency.

Planned Spending: For Reports on Plans and Priorities (RPPs) and Departmental

Performance Reports (DPRs), planned spending refers to those amounts that receive

Treasury Board approval by February 1. Therefore, planned spending may include

amounts incremental to planned expenditures presented in the Main Estimates. A

department is expected to be aware of the authorities that it has sought and received. The

determination of planned spending is a departmental responsibility, and departments must

be able to defend the expenditure and accrual numbers presented in their RPPs and DPRs.

Plans: The articulation of strategic choices, which provides information on how an

organization intends to achieve its priorities and associated results. Generally a plan will

explain the logic behind the strategies chosen and tend to focus on actions that lead up to

the expected result.

Priorities: Plans or projects that an organization has chosen to focus and report on during

the planning period. Priorities represent the things that are most important or what must

be done first to support the achievement of the desired Strategic Outcome(s).

Program: A group of related resource inputs and activities that are managed to meet

specific needs and to achieve intended results and that are treated as a budgetary unit.

Program Alignment Architecture: A structured inventory of an organization’s programs

depicting the hierarchical relationship between programs and the Strategic Outcome(s) to

which they contribute.

Report on Plans and Priorities: Provides information on the plans and expected

performance of appropriated organizations over a three-year period. These reports are

tabled in Parliament each spring.

Results: An external consequence attributed, in part, to an organization, policy, program

or initiative. Results are not within the control of a single organization, policy, program

or initiative; instead they are within the area of the organization’s influence.

Statutory Expenditures: Expenditures that Parliament has approved through legislation

other than appropriation acts. The legislation sets out the purpose of the expenditures and

the terms and conditions under which they may be made.

Strategic Outcome: A long-term and enduring benefit to Canadians that is linked to the

organization’s mandate, vision and core functions.



Sunset Program: A time-limited program that does not have an ongoing funding and

policy authority. When the program is set to expire, a decision must be made whether to

continue the program. In the case of a renewal, the decision specifies the scope, funding

level and duration.

Target: A measurable performance or success level that an organization, program or

initiative plans to achieve within a specified time period. Targets can be either

quantitative or qualitative.

Voted Expenditures: Expenditures that Parliament approves annually through an

Appropriation Act. The Vote wording becomes the governing conditions under which

these expenditures may be made.

Whole-of-Government Framework: Maps the financial contributions of federal

organizations receiving appropriations by aligning their Programs to a set of

16 government-wide, high-level outcome areas, grouped under four spending areas.


Appendix: Definitions 66



Endnotes

i Whole-of-Government Framework:

www.tbs-sct.gc.ca/ppg-cpr/frame-cadre-eng.aspx.

ii Public Accounts of Canada 2015:

www.tpsgc-pwgsc.gc.ca/recgen/cpc-pac/index-eng.html.

iii Public Works and Government Services Canada website:

http://www.tpsgc-pwgsc.gc.ca.

iv Information on data sources, their processing and reliability is available in the

supplementary tables on the CED website (See Appendix 1 – Technical Notes on

Performance Data):

www.dec-ced.gc.ca/eng/publications/agency/rmr.html.

v Statistics Canada (2013), Economic Impact Study from 2001 to 2010:

www.dec-ced.gc.ca/eng/publications/agency/evaluation/2014/318/index.html.

vi Statistics Canada (2013), Economic Impact Study from 2001 to 2010:


vii: Project to Implement the Eeyou Istchee Broadband Communications Network (ECN)

Case Study:


viii Summative Evaluation of Initiatives: Startup and Succession and Business Support:


ix Future-oriented Financial Statements (Unaudited) As at March 31, 2014 and 2015:

www.dec-ced.gc.ca/eng/publications/agency/rpp/2014-2015/302/index.html.

x CED’s Financial Statements:

http://www.dec-ced.gc.ca/eng/publications/agency/dpr/2015-2016/325/index.html

xi. Government of Canada Tax Expenditures and Evaluations:

www.fin.gc.ca/purl/taxexp-eng.asp.

http://www.tbs-sct.gc.ca/ppg-cpr/frame-cadre-eng.aspx


http://www.tpsgc-pwgsc.gc.ca/

http://www.dec-ced.gc.ca/eng/publications/agency/rmr.html

http://www.dec-ced.gc.ca/eng/publications/agency/evaluation/2014/318/index.html




http://www.dec-ced.gc.ca/eng/publications/agency/rpp/2014-2015/302/index.html

http://www.fin.gc.ca/purl/taxexp-eng.asp

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